Excel Activity: Capital Budgeting Tools Gardial Fisheries is considering two mutually exclusive investments. The projects' expected net cash flows are as follows:

Expected Net Cash Flows

Year

Project A

Project B

0	-$420		-$620
1	-410		175
2	-280		175
3	-140		175
4	840		175
5	840		175
6	828		175
7	-280		175

1. What is the crossover rate, and what is its significance? (Hint: Using the Excel IRR function, set the guess parameter to be 10%.) Round your answer for the crossover rate to two decimal places and for the NPV to the nearest cent.

   The crossover rate is 12.82 %. The crossover rate represents the cost of capital at which the two projects have the NPV of $ ______.

2. What is the regular payback period for these two projects? Round your answers to two decimal places.

   Regular payback period (Project A): _________years

   Regular payback period (Project B): _________years

3. At a cost of capital of 8%, what is the discounted payback period for these two projects? Round your answers to two decimal places.

   Discounted payback period (Project A): _________ years

   Discounted payback period (Project B): _________ years

4. What is the profitability index for each project if the cost of capital is 8%? Round your answers to three decimal places.

   Profitability index (Project A): _______ Years

   Profitability index (Project B): _______ Years

Please provide the excel formula for the the answer number too, I would love to understand them, please tell me if some element necessary to answer the questions is missing.